Waiting game continues as S&P 500 completed eighth session within range of upside measured move target at 1510 to suggest that resistance point may be problematic.

It also remains to be seen whether or not major indexes are working laterally in preparation for a resumption of uptrend, or if hesitation will precede some retrenchment on at least the Minor Cycle. “Overbought” conditions on all cycles suggest a pullback should not be ruled out.

If move since November lows turns out to be A-B-C rally with “B” leg pullback from December 19 to January 2, “C” leg rally may be ending since upside targets have been met.

If market is on verge of short-term negativity, trend under way since November may be toward endgame given “Overbought” conditions and simple fact prices cannot continue higher indefinitely without a correction. Downside sell levels at lower edges of 10-Day Price Channels will determine staying power of short-term trend.

Longer-term lingering weakness in MAAD, CPFL, Cumulative Volume, and Momentum, is an indication market could be on borrowed time. Nothing but new highs by all our key indicators, an unlikely event, would erase negative divergences.

Index

Daily / Weekly / Monthly Stops

Weekly

Monthly

2/4

2/5

2/6

2/7

2/8

2/8

2/28

S&P 500 Index

SELL1485.71

SELL1489.05

SELL1492.17

SELL1494.02

SELL1495.59

SELL1395.00

SELL1330.62

Dow Jones Industrials

SELL13702.83

SELL13749.07

SELL13790.75

SELL13817.61

SELL13837.35

SELL12903.12

SELL12570.95

NASDAQ Composite

SELL3130.09

SELL3132.01

SELL3133.89

SELL3135.18

SELL3137.22

SELL2941.35

SELL2862.45

Value Line Index

SELL3339.86

SELL3349.75

SELL3355.06

SELL3358.91

SELL3364.69

SELL3411.65

SELL2817.27

Note: Stop levels, a function of the extant trend, are based on the trailing moving average price channels for the Highs or the Lows of an index. Whether or not a specific index is suggesting a “Buy” or Sell” is determined by whether or not index prices are above or below the current channel Stop levels. Stop levels should only be used as an entry or exit guide and in conjunction with other market entry and exit strategies.